CB Financial Services, Inc. Announces Fourth Quarter and Full Year 2023 Financial Results and Declares Quarterly Cash Dividend

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WASHINGTON, Pa., January 31, 2024--(BUSINESS WIRE)--CB Financial Services, Inc. ("CB" or the "Company") (NASDAQGM: CBFV), the holding company of Community Bank (the "Bank"), today announced its fourth quarter and 2023 financial results.

Three Months Ended

Year Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

(Dollars in thousands, except per share data) (Unaudited)

Net Income (GAAP)

$

12,966

$

2,672

$

2,757

$

4,156

$

4,152

$

22,550

$

11,247

Net Income Adjustments

(9,905

)

29

78

(127

)

(66

)

(9,926

)

(208

)

Adjusted Net Income (Non-GAAP) (1)

$

3,061

$

2,701

$

2,835

$

4,029

$

4,086

$

12,624

$

11,039

Earnings per Common Share - Diluted (GAAP)

$

2.52

$

0.52

$

0.54

$

0.81

$

0.81

$

4.40

$

2.18

Adjusted Earnings per Common Share - Diluted (Non-GAAP) (1)

$

0.60

$

0.53

$

0.55

$

0.79

$

0.80

$

2.46

$

2.14

(1)

Refer to Explanation of Use of Non-GAAP Financial Measures and reconciliation of adjusted net income and adjusted earnings per common share - diluted as presented later in this Press Release.

2023 Fourth Quarter Financial Highlights

(Comparisons to three months ended December 31, 2022 unless otherwise noted)

  • Net income was $13.0 million, compared to $4.2 million. Current period results were driven by a $24.6 million pre-tax gain on the sale of the Bank’s subsidiary insurance company, Exchange Underwriters (EU), partially offset by a $9.8 million pre-tax loss on the sale of securities resulting primarily from the execution of a balance sheet repositioning strategy. Results were also impacted by net interest margin (NIM) compression coupled with increases in noninterest expense and income tax expense, partially offset by a decrease in the provision for credit losses.

    • Adjusted net income (Non-GAAP) was $3.1 million compared to $4.1 million.

    • Income before income tax expense was $18.3 million compared to $5.2 million.

    • Adjusted pre-provision net revenue (PPNR) (Non-GAAP) was $2.1 million compared to $5.1 million.

  • Earnings per diluted common share (EPS) increased to $2.52 from $0.81.

    • Adjusted earning per common share - diluted (Non-GAAP) was $0.60, compared to $0.80.

  • Return on average assets (annualized) was 3.62%, compared to 1.16%.

    • Adjusted return on average assets (annualized) (Non-GAAP) was 0.85%, compared to 1.15%.

  • Return on average equity (annualized) was 44.99%, compared to 15.26%.

    • Adjusted return on average equity (annualized) (Non-GAAP) was 10.62%, compared to 15.01%.

  • NIM declined to 3.19% from 3.46%.

  • Net interest and dividend income was $11.1 million, compared to $11.9 million.

  • Noninterest income increased to $16.5 million, compared to $2.4 million including the aforementioned gain on the sale of the subsidiary and loss on the sale of securities.

  • Noninterest expense increased to $10.8 million, compared to $9.0 million, primarily due to increases in compensation and benefits and equipment costs.

(Amounts at December 31, 2023; comparisons to December 31, 2022, unless otherwise noted)

  • Total assets increased to $1.46 billion from $1.41 billion.

  • Total loans increased $60.5 million, or 5.8%, to $1.11 billion compared to $1.05 billion, and included increases of $41.2 million, or 58.9%, in commercial and industrial loans, $30.3 million, or 6.9%, in commercial real estate loans, $17.1 million, or 5.2%, in residential mortgage loans, and $8.9 million, or 43.8%, in other loans, partially offset by a decrease of $35.3 million, or 24.0%, in consumer loans, which is primarily comprised of indirect automobile loans. Excluding the $34.9 million decrease in indirect automobile loans resulting from the discontinuation of that product as of June 30, 2023, total loans increased $95.4 million, or 9.1%.

  • Nonperforming loans to total loans was 0.20%, a decrease of 35 basis points ("bps"), compared to 0.55%.

  • Total deposits were $1.267 billion, a decrease of $1.3 million, compared to $1.269 billion.

  • Book value per share was $27.31, compared to $22.43 as of September 30, 2023 and $21.60 as of December 31, 2022.

  • Tangible book value per share (Non-GAAP) was $25.23, compared to $20.10 as of September 30, 2023 and $19.00 as of December 31, 2022. The year-to-date change was due to an increase in stockholders’ equity primarily related to current period net income of $22.6 million, a $9.5 million increase in accumulated other comprehensive income and a $2.1 million positive adjustment due to the Company’s January 1, 2023 adoption of CECL, partially offset by current period dividends paid to stockholders of $5.1 million.

Management Commentary

President and CEO John H. Montgomery commented, "Three years ago, we embarked on a comprehensive strategy aimed at optimizing operations, investing in talent, and fortifying our dedication to all stakeholders by striving for excellence in client experience. Despite facing a challenging and uncertain economic landscape, our efforts in 2023, coupled with the work of the preceding two years, underscore our commitment to these objectives.

While our fourth-quarter results reflected the ongoing trend of net interest margin pressure due to heightened funding costs driven by prevailing market interest rates, we sustained consistent loan growth. This growth was particularly notable in higher-yielding commercial loans. In a year marked by significant deposit movements, our core deposits remained relatively stable, albeit shifting from non-interest and low interest bearing accounts to higher cost time deposits. Notably, our asset quality remains strong, with nonperforming loans well below prior year levels.

Despite the challenges posed by the interest rate environment, our prior investments in talent and our ongoing efforts to streamline operations are yielding positive outcomes across our franchise.

During the quarter, we successfully completed the sale of our full-service independent insurance agency subsidiary, Exchange Underwriters, to World Insurance Associates. This transaction not only realized a substantial valuation premium but also proved immediately accretive to capital, tangible book value and liquidity. The additional capital infusion provides us with the flexibility to assess and pursue various strategic initiatives that reinforce our core banking business, with a specific focus on enhancing long-term shareholder value.

Furthermore, we made a proactive decision to reposition our securities portfolio. On an annualized basis, the acquired securities exhibit a positive spread differential of approximately 360 basis points over the securities that were divested. This strategic move is anticipated to add approximately 17 basis points to net interest margin and contribute approximately $1.8 million of after-tax earnings in 2024. Aligned with the sale of our insurance agency subsidiary, we view this as a judicious deployment of capital designed to augment long-term shareholder value and bolster earnings."

In conclusion, Mr. Montgomery affirmed, "As we usher in 2024, our commitment to prudently manage our capital and liquidity positions remains unwavering. We will persist in investing in our franchise, staying true to our long-term plan and prioritizing the delivery of an exceptional client experience that accrues benefits to all our stakeholders."

Dividend Information

The Company’s Board of Directors declared a $0.25 quarterly cash dividend per outstanding share of common stock, payable on or about February 29, 2024, to stockholders of record as of the close of business on February 15, 2024.

2023 Fourth Quarter Financial Review

Net Interest and Dividend Income

Net interest and dividend income decreased $730,000, or 6.2%, to $11.1 million for the three months ended December 31, 2023 compared to $11.9 million for the three months ended December 31, 2022.

  • Net interest margin (GAAP) decreased to 3.19% for the three months ended December 31, 2023 compared to 3.46% for the three months ended December 31, 2022. Fully tax equivalent (FTE) net interest margin (Non-GAAP) decreased 26 bps to 3.21% for the three months ended December 31, 2023 compared to 3.47% for the three months ended December 31, 2022.

  • Interest and dividend income increased $3.1 million, or 22.0%, to $16.9 million for the three months ended December 31, 2023 compared to $13.9 million for the three months ended December 31, 2022.

    • Interest income on loans increased $3.0 million, or 25.1%, to $14.8 million for the three months ended December 31, 2023 compared to $11.8 million for the three months ended December 31, 2022. The average yield on loans increased 82 bps to 5.36% compared to 4.54% resulting in a $2.2 million increase in interest income on loans. The average balance of loans increased $63.6 million to $1.10 billion from $1.03 billion, generating $750,000 of additional interest income on loans.

    • Interest income on taxable investment securities increased $190,000, or 19.5%, to $1.2 million for the three months ended December 31, 2023 compared to $974,000 for the three months ended December 31, 2022 driven by a 45 bp increase in average yield, partially offset by a $10.2 million decrease in average balances.

    • Interest income on interest-earning deposits at other banks decreased $131,000, to $808,000 for the three months ended December 31, 2023 compared to $939,000 for the three months ended December 31, 2022 driven by a $29.9 million decrease in average balances, partially offset by a 91 bp increase in the average yield. The increase in the average yield was the result of the Federal Reserve Board’s interest rate increases.

  • Interest expense increased $3.8 million, or 190.0%, to $5.8 million for the three months ended December 31, 2023 compared to $2.0 million for the three months ended December 31, 2022.

    • Interest expense on deposits increased $3.5 million, or 194.6%, to $5.3 million for the three months ended December 31, 2023 compared to $1.8 million for the three months ended December 31, 2022. Rising market interest rates led to the repricing of interest-bearing demand and money market deposits and a shift in deposits from noninterest-bearing to interest-bearing demand and time deposits which resulted in a 139 bp, or 171.7%, increase in the average cost of interest-bearing deposits compared to the three months ended December 31, 2022. This accounted for a $3.4 million increase in interest expense. Additionally, interest-bearing deposit balances increased $73.3 million, or 8.3%, to $961.0 million as of December 31, 2023 compared to $887.7 million as of December 31, 2022, accounting for a $170,000 increase in interest expense.

    • Interest expense on borrowed funds increased $255,000, or 143.3%, to $433,000 for the three months ended December 31, 2023 compared to $178,000 for the three months ended December 31, 2022. The average balance of borrowed funds increased $20.6 million due to $20.0 million of FHLB long-term advances added during the second quarter of 2023. The increase in the average balance accounted for a $185,000 increase in interest expense.

Provision for Credit Losses

Effective January 1, 2023, the Company adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. The provision for credit losses recorded for the three months ended December 31, 2023 was a recovery of $1.4 million and was primarily due to improvements in qualitative factors coupled with a decrease in historical loss rates. This compared to no provision for credit losses recorded for the three months ended December 31, 2022.

Noninterest Income

Noninterest income increased $14.2 million, or 599.9%, to $16.5 million for the three months ended December 31, 2023, compared to $2.4 million for the three months ended December 31, 2022. This increase related to a $24.6 million pre-tax gain on the sale of EU, partially offset by a $9.8 million pre-tax loss on the sale of securities primarily resulting from the execution of a balance sheet repositioning strategy. Noninterest income excluding the gain on the sale of the subsidiary and gains and losses on securities for both periods decreased $507,000 to $1.8 million for the three months ended December 31, 2023 compared to $2.3 million for the three months ended December 31, 2022. This decrease resulted primarily from a $430,000 decrease in insurance commissions as only two months of income were recognized for the three months ended December 31, 2023 due to the sale of EU, compared to a full quarter of income recognized for the three months ended December 31, 2022.

Noninterest Expense

Noninterest expense increased $1.8 million, or 19.6%, to $10.8 million for the three months ended December 31, 2023 compared to $9.0 million for the three months ended December 31, 2022. The current quarter increase included one-time non-recurring expenses associated with sale of the insurance subsidiary of $691,000 related to salaries and benefits, $109,000 related to other noninterest expenses and $17,000 related to legal and professional fees. Salaries and benefits increased $1.6 million, or 34.6%, to $6.2 million primarily due to previously mentioned one-time non recurring expense, merit increases and revenue producing staff additions. Equipment expense increased $120,000 or 67.4%, to $298,000, due to costs associated with the implementation and operation of new interactive teller machines.

Statement of Financial Condition Review

Assets

Total assets increased $47.2 million, or 3.4%, to $1.46 billion at December 31, 2023, compared to $1.41 billion at December 31, 2022.

  • Cash and due from banks decreased $33.7 million, or 32.5%, to $70.0 million at December 31, 2023, compared to $103.7 million at December 31, 2022, due to significant loan growth.

  • Securities increased $17.0 million, or 8.9%, to $207.1 million at December 31, 2023, compared to $190.1 million at December 31, 2022. The securities balance was primarily impacted by the purchase of $29.9 million of collateralized loan obligation securities, partially offset by $15.8 million of repayments on mortgage-backed and collateralized mortgage obligation securities and a $110,000 decrease in the market value in the equity securities portfolio, which is primarily comprised of bank stocks. During the fourth quarter, the Bank implemented a balance sheet repositioning strategy of its portfolio of available-for-sale securities. The Bank sold $69.3 million in market value of its lower-yielding U.S government agency, mortgage-backed and municipal securities with an average yield of 1.89% and purchased $69.3 million of higher-yielding mortgage-backed and collateralized mortgage obligation securities with an average yield of 5.49%.

Loans and Credit Quality

  • Total loans increased $60.5 million, or 5.8%, to $1.11 billion at December 31, 2023 compared to $1.05 billion at December 31, 2022. Loan growth was driven by increases in commercial and industrial loans, commercial real estate loans, residential mortgage loans and other loans of $41.2 million, $30.3 million, $17.1 million, and $8.9 million, respectively, partially offset by a decrease in consumer loans of $35.3 million. The decrease in consumer loans resulted from a reduction in indirect automobile loan production due to rising market interest rates and the discontinuation of this product offering as of June 30, 2023. This portfolio is expected to continue to decline as resources are allocated and production efforts are focused on more profitable commercial products. Excluding the $34.9 million decrease in indirect automobile loans, total loans increased $95.4 million, or 9.1%.

  • The allowance for credit losses (ACL) was $9.7 million at December 31, 2023 and $12.8 million at December 31, 2022. As a result, the ACL to total loans was 0.87% at December 31, 2023 compared to 1.22% at December 31, 2022. The change in the ACL was primarily due to the Company's aforementioned adoption of CECL. At adoption, the Company decreased its ACL by $3.4 million. Contributing to the change in ACL was a prior year charge-off of $2.7 million and qualitative factors that significantly impacted the incurred loss model driven by historical activity compared to the adopted CECL methodology that is centered around CECL activity using a forecast approach. During the current year, the Company recorded a recovery of credit losses of $502,000 due to improvements in qualitative factors coupled with a decrease in historical loss rates

  • Net recoveries for the three months ended December 31, 2023 were $6,000. Net charge-offs for the three months ended December 31, 2022 were $35,000, or 0.01% of average loans on an annualized basis. Net recoveries for the year ended December 31, 2023 were $557,000 primarily due to recoveries totaling $750,000 related to the prior year $2.7 million charged-off commercial and industrial loan. Net charge-offs for the year ended December 31, 2022 were $2.5 million.

  • Nonperforming loans, which includes nonaccrual loans and accruing loans past due 90 days or more, were $2.2 million at December 31, 2023 compared to $5.8 million at December 31, 2022. The decrease of $3.6 million was due to ten loans totaling $1.7 million transferred from nonaccrual to accrual status during the current period and a $1.4 million partial repayment of a nonaccrual commercial real estate loan. Nonperforming loans to total loans ratio was 0.20% at December 31, 2023 compared to 0.55% at December 31, 2022.

Other

  • Intangible assets decreased $2.6 million, or 74.0%, to $958,000 at December 31, 2023 compared to $3.5 million at December 31, 2022 due to $1.8 million of amortization expense recognized during the period and a write-off of the $789,000 remaining balance of EU’s customer list as a result of the sale of the subsidiary.

  • Accrued interest and other assets increased $1.4 million or 6.6%, to $22.5 million at December 31, 2023, compared to $26.7 million at December 31, 2022 due primarily to a $1.8 million adjustment related to a fixed-to-floating interest rate swap derivative.

Total liabilities increased $17.5 million, or 1.3%, to $1.32 billion at December 31, 2023 compared to $1.30 billion at December 31, 2022.

Deposits

  • Total deposits decreased $1.3 million to $1.267 billion as of December 31, 2023 compared to $1.269 billion at December 31, 2022. Non interest-bearing demand deposits decreased $112.7 million, savings deposits decreased $53.3 million, and money market deposits decreased $8.1 million, while interest-bearing demand deposits increased $51.2 million and time deposits increased $121.5 million. The increase in interest-bearing demand deposits was primarily the result of higher interest rates attracting more customers and additional deposits from existing customers while higher time deposits resulted from the offering of a higher-rate certificate of deposit product and the addition of $29.0 million of brokered certificates of deposit. The brokered certificates of deposits all mature within three months and were utilized to fund the purchase of floating rate collateralized loan obligation securities. FDIC insured deposits totaled approximately 59.4% of total deposits while an additional 16.0% of deposits were collateralized with investment securities.

Borrowed Funds

  • Other borrowings increased $20.0 million, or 136.6%, to $34.7 million at December 31, 2023, compared to $14.6 million at December 31, 2022. During the second quarter, the Bank entered into $20.0 million of FHLB advances for a term of 24 months at 4.92%, the proceeds of which were utilized to match fund originations within the Bank’s commercial and industrial loan portfolio.

  • Short-term borrowings decreased $8.1 million, or 100.0%, as there were no short-term borrowings at December 31, 2023, compared to $8.1 million at December 31, 2022. At December 31, 2022, short-term borrowings were comprised entirely of securities sold under agreements to repurchase. These accounts were transitioned into other deposit products and account for a portion of the interest-bearing demand deposit increase.

Accrued Interest Payable and Other Liabilities

  • Accrued interest payable and other liabilities increased $6.8 million, or 89.7%, to $14.4 million at December 31, 2023, compared to $7.6 million at December 31, 2022 primarily due to a $3.4 million increase in accrued taxes payable, a $1.8 million increase related to a fixed-to-floating interest rate swap derivative and a $1.5 million increase in accrued interest payable on deposit accounts.

Stockholders’ Equity

Stockholders’ equity increased $29.7 million, or 27.0%, to $139.8 million at December 31, 2023, compared to $110.2 million at December 31, 2022. Key factors positively impacting stockholders’ equity included $22.6 million of net income for the current period, a $9.5 million increase in accumulated other comprehensive income and a $2.1 million positive adjustment, net of tax, due to the Company’s January 1, 2023 adoption of CECL as described above. These factors were partially offset by the payment of $5.1 million in dividends since December 31, 2022 and activity under share repurchase programs. On April 21, 2022, a $10.0 million repurchase program was authorized, with the Company repurchasing 74,656 shares at an average price of $22.38 per share since the inception of the program. In total, the Company repurchased $274,000 of common stock since December 31, 2022. The program expired on May 1, 2023.

Book value per share

Book value per common share was $27.31 at December 31, 2023 compared to $21.60 at December 31, 2022, an increase of $5.71.

Tangible book value per common share (Non-GAAP) was $25.23 at December 31, 2023, compared to $19.00 at December 31, 2022, an increase of $6.23.

Refer to "Explanation of Use of Non-GAAP Financial Measures" at the end of this Press Release.

About CB Financial Services, Inc.

CB Financial Services, Inc. is the bank holding company for Community Bank, a Pennsylvania-chartered commercial bank. Community Bank operates its branch network in southwestern Pennsylvania and West Virginia. Community Bank offers a broad array of retail and commercial lending and deposit services.

For more information about CB Financial Services, Inc. and Community Bank, visit our website at www.communitybank.tv.

Statement About Forward-Looking Statements

Statements contained in this press release that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Act. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to, general and local economic conditions, changes in market interest rates, deposit flows, demand for loans, real estate values and competition, competitive products and pricing, the ability of our customers to make scheduled loan payments, loan delinquency rates and trends, our ability to manage the risks involved in our business, our ability to control costs and expenses, inflation, market and monetary fluctuations, changes in federal and state legislation and regulation applicable to our business, actions by our competitors, and other factors that may be disclosed in the Company’s periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.

CB FINANCIAL SERVICES, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Dollars in thousands, except share and per share data) (Unaudited)

Selected Financial Condition Data

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

Assets

Cash and Due From Banks

$

69,993

$

52,597

$

78,093

$

103,545

$

103,700

Securities

207,095

172,904

181,427

189,025

190,058

Loans

Real Estate:

Residential

347,808

346,485

338,493

332,840

330,725

Commercial

467,154

466,910

458,614

452,770

436,805

Construction

43,116

41,874

44,523

39,522

44,923

Commercial and Industrial

111,278

100,873

102,266

79,501

70,044

Consumer

111,643

122,516

134,788

146,081

146,927

Other

29,397

23,856

22,470

21,151

20,449

Total Loans

1,110,396

1,102,514

1,101,154

1,071,865

1,049,873

Allowance for Credit Losses

(9,707

)

(10,848

)

(10,666

)

(10,270

)

(12,819

)

Loans, Net

1,100,689

1,091,666

1,090,488

1,061,595

1,037,054

Premises and Equipment, Net

19,704

18,524

18,582

17,732

17,844

Bank-Owned Life Insurance

25,378

25,227

25,082

24,943

25,893

Goodwill

9,732

9,732

9,732

9,732

9,732

Intangible Assets, Net

958

2,177

2,622

3,068

3,513

Accrued Interest Receivable and Other Assets

22,542

26,665

26,707

21,068

21,144

Total Assets

$

1,456,091

$

1,399,492

$

1,432,733

$

1,430,708

$

1,408,938

Liabilities

Deposits

Noninterest-Bearing Demand Accounts

$

277,747

$

305,145

$

316,098

$

350,911

$

390,405

Interest-Bearing Demand Accounts

362,994

357,381

374,654

359,051

311,825

Money Market Accounts

201,074

189,187

185,814

206,174

209,125

Savings Accounts

194,703

207,148

217,267

234,935

248,022

Time Deposits

230,641

177,428

169,482

130,449

109,126

Total Deposits

1,267,159

1,236,289

1,263,315

1,281,520

1,268,503

Short-Term Borrowings

—

—

—

121

8,060

Other Borrowings

34,678

34,668

34,658

14,648

14,638

Accrued Interest Payable and Other Liabilities

14,420

13,689

18,171

17,224

7,582

Total Liabilities

1,316,257

1,284,646

1,316,144

1,313,513

1,298,783

Stockholders’ Equity

139,834

114,846

116,589

117,195

110,155

Total Liabilities and Stockholders’ Equity

$

1,456,091

$

1,399,492

$

1,432,733

$

1,430,708

$

1,408,938

(Dollars in thousands, except share and per share data) (Unaudited)

Three Months Ended

Year Ended

Selected Operating Data

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

Interest and Dividend Income:

Loans, Including Fees

$

14,804

$

14,049

$

13,426

$

12,371

$

11,835

$

54,650

$

41,933

Securities:

Taxable

1,164

940

950

964

974

4,017

3,852

Tax-Exempt

33

41

42

41

40

157

213

Dividends

32

25

25

24

28

106

91

Other Interest and Dividend Income

872

819

760

844

978

3,295

1,627

Total Interest and Dividend Income

16,905

15,874

15,203

14,244

13,855

62,225

47,716

Interest Expense:

Deposits

5,336

4,750

3,842

2,504

1,811

16,433

4,025

Short-Term Borrowings

26

—

3

2

7

32

63

Other Borrowings

407

407

238

155

171

1,207

693

Total Interest Expense

5,769

5,157

4,083

2,661

1,989

17,672

4,781

Net Interest and Dividend Income

11,136

10,717

11,120

11,583

11,866

44,553

42,935

(Recovery) Provision for Credit Losses - Loans

(1,147

)

291

492

80

—

(284

)

3,784

(Recovery) Provision for Credit Losses - Unfunded Commitments

(273

)

115

(60

)

—

—

(218

)

—

Net Interest and Dividend Income After (Recovery) Provision for Credit Losses

12,556

10,311

10,688

11,503

11,866

45,055

39,151

Noninterest Income:

Service Fees

460

466

448

445

530

1,819

2,160

Insurance Commissions

969

1,436

1,511

1,922

1,399

5,839

5,934

Other Commissions

60

94

224

144

157

521

669

Net Gain (Loss) on Sal...es of Loans

2

—

(5

)

2

—

—

—

Net (Loss) Gain on Securities

(9,830

)

(37

)

(100

)

(232

)

83

(10,199

)

(168

)

Net Gain on Purchased Tax Credits

7

7

7

7

14

29

57

Gain on Sale of Subsidiary

24,578

—

—

—

—

24,578

—

Net Gain on Disposal of Fixed Assets

—

—

—

11

—

11

431

Income from Bank-Owned Life Insurance

151

145

139

140

143

576

561

Net Gain on Bank-Owned Life Insurance Claims

—

—

1

302

—

303

—

Other Income

121

301

44

69

34

535

176

Total Noninterest Income

16,518

2,412

2,269

2,810

2,360

24,012

9,820

Noninterest Expense:

Salaries and Employee Benefits

6,224

5,369

5,231

5,079

4,625

21,903

18,469

Occupancy

810

698

789

701

817

2,998

3,047

Equipment

298

265

283

218

178

1,064

739

Data Processing

726

714

718

857

681

3,014

2,152

FDIC Assessment

189

189

224

152

154

754

638

PA Shares Tax

217

217

195

260

258

889

979

Contracted Services

299

286

434

147

405

1,166

1,628

Legal and Professional Fees

434

320

246

182

362

1,182

1,237

Advertising

158

114

75

79

165

426

527

Other Real Estate Owned (Income)

(36

)

(8

)

(35

)

(37

)

(38

)

(115

)

(151

)

Amortization of Intangible Assets

430

445

446

445

446

1,766

1,782

Other

1,016

878

895

945

945

3,735

3,844

Total Noninterest Expense

10,765

9,487

9,501

9,028

8,998

38,782

34,891

Income Before Income Tax Expense

18,309

3,236

3,456

5,285

5,228

30,285

14,080

Income Tax Expense

5,343

564

699

1,129

1,076

7,735

2,833

Net Income

$

12,966

$

2,672

$

2,757

$

4,156

$

4,152

$

22,550

$

11,247

Three Months Ended

Year Ended

Per Common Share Data

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

Dividends Per Common Share

$

0.25

$

0.25

$

0.25

$

0.25

$

0.24

$

1.00

$

0.96

Earnings Per Common Share - Basic

2.53

0.52

0.54

0.81

0.81

4.41

2.19

Earnings Per Common Share - Diluted

2.52

0.52

0.54

0.81

0.81

4.40

2.18

Weighted Average Common Shares Outstanding - Basic

5,119,184

5,115,026

5,111,987

5,109,597

5,095,237

5,113,978

5,136,670

Weighted Average Common Shares Outstanding - Diluted

5,135,997

5,126,546

5,116,134

5,115,705

5,104,254

5,122,916

5,149,312

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

Common Shares Outstanding

5,119,543

5,120,678

5,111,678

5,116,830

5,100,189

Book Value Per Common Share

$

27.31

$

22.43

$

22.81

$

22.90

$

21.60

Tangible Book Value per Common Share (1)

25.23

20.10

20.39

20.40

19.00

Stockholders’ Equity to Assets

9.6

%

8.2

%

8.1

%

8.2

%

7.8

%

Tangible Common Equity to Tangible Assets (1)

8.9

7.4

7.3

7.4

6.9

Three Months Ended

Year Ended

Selected Financial Ratios (2)

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

Return on Average Assets

3.62

%

0.75

%

0.79

%

1.21

%

1.16

%

1.60

%

0.80

%

Return on Average Equity

44.99

9.03

9.38

14.69

15.26

19.42

9.56

Average Interest-Earning Assets to Average Interest-Bearing Liabilities

138.74

139.65

142.28

147.38

148.93

141.87

148.06

Average Equity to Average Assets

8.04

8.32

8.38

8.27

7.63

8.25

8.36

Net Interest Rate Spread

2.56

2.54

2.78

3.13

3.18

2.73

3.07

Net Interest Rate Spread (FTE) (1)

2.57

2.55

2.79

3.14

3.19

2.74

3.08

Net Interest Margin

3.19

3.13

3.29

3.51

3.46

3.28

3.24

Net Interest Margin (FTE) (1)

3.21

3.14

3.30

3.52

3.47

3.29

3.25

Net Charge-Offs (Recoveries) to Average Loans

—

0.04

0.04

(0.29

)

0.01

(0.05

)

0.25

Efficiency Ratio

38.93

72.26

70.96

62.72

63.25

56.56

66.14

Asset Quality Ratios

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

Allowance for Credit Losses to Total Loans

0.87

%

0.98

%

0.97

%

0.96

%

1.22

%

Allowance for Credit Losses to Nonperforming Loans (3)

433.35

330.13

260.46

189.73

221.06

Allowance for Credit Losses to Noncurrent Loans (4)

433.35

330.13

260.46

189.73

320.64

Delinquent and Nonaccrual Loans to Total Loans (4) (5)

0.62

0.73

0.68

1.02

0.81

Nonperforming Loans to Total Loans (3)

0.20

0.30

0.37

0.51

0.55

Noncurrent Loans to Total Loans (4)

0.20

0.30

0.37

0.51

0.38

Nonperforming Assets to Total Assets (6)

0.16

0.23

0.30

0.40

0.41

Capital Ratios (7)

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

Common Equity Tier 1 Capital (to Risk Weighted Assets)

13.64

%

12.77

%

12.54

%

12.60

%

12.33

%

Tier 1 Capital (to Risk Weighted Assets)

13.64

12.77

12.54

12.60

12.33

Total Capital (to Risk Weighted Assets)

14.61

13.90

13.64

13.69

13.58

Tier 1 Leverage (to Adjusted Total Assets)

10.19

9.37

9.26

9.24

8.66

(1)

Refer to Explanation of Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.

(2)

Interim period ratios are calculated on an annualized basis.

(3)

Nonperforming loans consist of all nonaccrual loans and accruing loans that are 90 days or more past due.

(4)

Noncurrent loans consist of nonaccrual loans and accruing loans that are 90 days or more past due.

(5)

Delinquent loans consist of accruing loans that are 30 days or more past due.

(6)

Nonperforming assets consist of nonperforming loans and other real estate owned.

(7)

Capital ratios are for Community Bank only.

Certain items previously reported may have been reclassified to conform with the current reporting period’s format.

AVERAGE BALANCES AND YIELDS

Three Months Ended

December 31, 2023

September 30, 2023

June 30, 2023

March 31, 2023

December 31, 2022

Average
Balance

Interest
and
Dividends

Yield /
Cost (1)

Average
Balance

Interest
and
Dividends

Yield /
Cost (1)

Average
Balance

Interest
and
Dividends

Yield /
Cost (1)

Average
Balance

Interest
and
Dividends

Yield /
Cost (1)

Average
Balance

Interest
and
Dividends

Yield /
Cost (1)

(Dollars in thousands) (Unaudited)

Assets:

Interest-Earning Assets:

Loans, Net (2)

$

1,098,284

$

14,840

5.36

%

$

1,088,691

$

14,081

5.13

%

$

1,079,399

$

13,450

5.00

%

$

1,040,570

$

12,391

4.83

%

$

1,034,714

$

11,853

4.54

%

Debt Securities

Taxable

206,702

1,164

2.25

204,848

940

1.84

209,292

950

1.82

213,158

964

1.81

216,915

974

1.80

Exempt From Federal Tax

4,833

42

3.48

6,013

52

3.46

6,180

53

3.43

6,270

52

3.32

6,277

51

3.25

Equity Securities

2,693

32

4.75

2,693

25

3.71

2,693

25

3.71

2,693

24

3.56

2,693

28

4.16

Interest-Earning Deposits at Banks

68,164

808

4.74

52,466

750

5.72

53,582

721

5.38

73,221

805

4.40

98,110

939

3.83

Other Interest-Earning Assets

3,387

64

7.50

3,292

69

8.32

2,783

39

5.62

2,633

39

6.01

2,875

39

5.38

Total Interest-Earning Assets

1,384,063

16,950

4.86

1,358,003

15,917

4.65

1,353,929

15,238

4.51

1,338,545

14,275

4.33

1,361,584

13,884

4.05

Noninterest-Earning Assets

37,750

52,885

52,812

49,703

52,716

Total Assets

$

1,421,813

$

1,410,888

$

1,406,741

$

1,388,248

$

1,414,300

Liabilities and Stockholders' Equity:

Interest-Bearing Liabilities:

Interest-Bearing Demand Accounts

$

362,018

$

1,965

2.15

%

$

363,997

$

2,003

2.18

%

$

354,497

$

1,582

1.79

%

$

335,327

$

1,191

1.44

%

$

315,352

$

810

1.02

%

Savings Accounts

200,737

57

0.11

212,909

54

0.10

225,175

53

0.09

242,298

37

0.06

249,948

29

0.05

Money Market Accounts

205,060

1,441

2.79

187,012

1,141

2.42

194,565

1,033

2.13

213,443

939

1.78

206,192

604

1.16

Time Deposits

193,188

1,873

3.85

173,832

1,552

3.54

155,867

1,174

3.02

101,147

337

1.35

116,172

368

1.26

Total Interest-Bearing Deposits

961,003

5,336

2.20

937,750

4,750

2.01

930,104

3,842

1.66

892,215

2,504

1.14

887,664

1,811

0.81

Short-Term Borrowings

1,902

26

5.42

—

—

—

480

3

2.51

1,344

2

0.60

8,985

7

0.31

Other Borrowings

34,673

407

4.66

34,662

407

4.66

21,026

238

4.54

14,641

155

4.29

17,598

171

3.86

Total Interest-Bearing Liabilities

997,578

5,769

2.29

972,412

5,157

2.10

951,610

4,083

1.72

908,200

2,661

1.19

914,247

1,989

0.86

Noninterest-Bearing Demand Deposits

305,789

312,016

326,262

362,343

391,300

Total Funding and Cost of Funds

1,303,367

1.76

1,284,428

1.59

1,277,872

1.28

1,270,543

0.85

1,305,547

0.60

Other Liabilities

4,119

9,025

10,920

2,953

788

Total Liabilities

1,307,486

1,293,453

1,288,792

1,273,496

1,306,335

Stockholders' Equity

114,327

117,435

117,949

114,752

107,965

Total Liabilities and Stockholders' Equity

$

1,421,813

$

1,410,888

$

1,406,741

$

1,388,248

$

1,414,300

Net Interest Income (FTE)

(Non-GAAP) (3)

$

11,181

$

10,760

$

11,155

$

11,614

$

11,895

Net Interest-Earning Assets (4)

386,485

385,591

402,319

430,345

447,337

Net Interest Rate Spread (FTE)

(Non-GAAP) (3) (5)

2.57

%

2.55

%

2.79

%

3.14

%

3.19

%

Net Interest Margin (FTE)

(Non-GAAP) (3)(6)

3.21

3.14

3.30

3.52

3.47

(1)

Annualized based on three months ended results.

(2)

Net of the allowance for credit losses and includes nonaccrual loans with a zero yield.

(3)

Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.

(4)

Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(5)

Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(6)

Net interest margin represents annualized net interest income divided by average total interest-earning assets.

AVERAGE BALANCES AND YIELDS

Year Ended

December 31, 2023

December 31, 2022

Average
Balance

Interest
and
Dividends

Yield /
Cost

Average
Balance

Interest
and
Dividends

Yield /
Cost

(Dollars in thousands) (Unaudited)

Assets:

Interest-Earning Assets:

Loans, Net (1)

$

1,076,928

$

54,763

5.09

%

$

1,019,124

$

42,010

4.12

%

Debt Securities

Taxable

208,472

4,017

1.93

220,818

3,852

1.74

Exempt From Federal Tax

5,821

199

3.42

8,383

270

3.22

Marketable Equity Securities

2,693

106

3.94

2,693

91

3.38

Interest-Earning Deposits at Banks

61,818

3,084

4.99

71,283

1,473

2.07

Other Interest-Earning Assets

3,027

211

6.97

3,092

154

4.98

Total Interest-Earning Assets

1,358,759

62,380

4.59

1,325,393

47,850

3.61

Noninterest-Earning Assets

48,268

81,035

Total Assets

$

1,407,027

$

1,406,428

Liabilities and Stockholders' Equity:

Interest-Bearing Liabilities:

Interest-Bearing Demand Accounts

$

354,060

$

6,741

1.90

%

$

282,850

$

1,362

0.48

%

Savings Accounts

220,146

202

0.09

248,334

88

0.04

Money Market Accounts

199,962

4,554

2.28

194,223

976

0.50

Time Deposits

156,310

4,936

3.16

124,817

1,599

1.28

Total Interest-Bearing Deposits

930,478

16,433

1.77

850,224

4,025

0.47

Short-Term Borrowings

931

32

3.44

27,360

63

0.23

Other Borrowings

26,328

1,207

4.58

17,609

693

3.94

Total Interest-Bearing Liabilities

957,737

17,672

1.85

895,193

4,781

0.53

Noninterest-Bearing Demand Deposits

326,408

389,553

Total Funding and Cost of Funds

1,284,145

1.38

1,284,746

0.37

Other Liabilities

6,764

4,072

Total Liabilities

1,290,909

1,288,818

Stockholders' Equity

116,118

117,610

Total Liabilities and Stockholders' Equity

$

1,407,027

$

1,406,428

Net Interest Income (FTE) (Non-GAAP) (2)

44,708

43,069

Net Interest-Earning Assets (3)

401,022

430,200

Net Interest Rate Spread (FTE) (Non-GAAP) (2)(4)

2.74

%

3.08

%

Net Interest Margin (FTE) (Non-GAAP) (2)(5)

3.29

3.25

(1)

Net of the allowance for credit losses and includes nonaccrual loans with a zero yield.

(2)

Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure.

(3)

Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.

(4)

Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(5)

Net interest margin represents annualized net interest income divided by average total interest-earning assets.

Explanation of Use of Non-GAAP Financial Measures

In addition to financial measures presented in accordance with generally accepted accounting principles ("GAAP"), we use, and this Press Release contains or references, certain Non-GAAP financial measures. We believe these Non-GAAP financial measures provide useful information in understanding our underlying results of operations or financial position and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Non-GAAP adjusted items impacting the Company's financial performance are identified to assist investors in providing a complete understanding of factors and trends affecting the Company’s business and in analyzing the Company’s operating results on the same basis as that applied by management. Although we believe that these Non-GAAP financial measures enhance the understanding of our business and performance, they should not be considered an alternative to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with similar Non-GAAP measures which may be presented by other companies. Where Non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found herein.

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

(Dollars in thousands, except share and per share data) (Unaudited)

Total Assets (GAAP)

$

1,456,091

$

1,399,492

$

1,432,733

$

1,430,708

$

1,408,938

Goodwill and Intangible Assets, Net

(10,690

)

(11,909

)

(12,354

)

(12,800

)

(13,245

)

Tangible Assets (Non-GAAP) (Numerator)

$

1,445,401

$

1,387,583

$

1,420,379

$

1,417,908

$

1,395,693

Stockholders' Equity (GAAP)

$

139,834

$

114,846

$

116,589

$

117,195

$

110,155

Goodwill and Intangible Assets, Net

(10,690

)

(11,909

)

(12,354

)

(12,800

)

(13,245

)

Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator)

$

129,144

$

102,937

$

104,235

$

104,395

$

96,910

Stockholders’ Equity to Assets (GAAP)

9.6

%

8.2

%

8.1

%

8.2

%

7.8

%

Tangible Common Equity to Tangible Assets (Non-GAAP)

8.9

%

7.4

%

7.3

%

7.4

%

6.9

%

Common Shares Outstanding (Denominator)

5,119,543

5,120,678

5,111,678

5,116,830

5,100,189

Book Value per Common Share (GAAP)

$

27.31

$

22.43

$

22.81

$

22.90

$

21.60

Tangible Book Value per Common Share (Non-GAAP)

$

25.23

$

20.10

$

20.39

$

20.40

$

19.00

Three Months Ended

Year Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

(Dollars in thousands) (Unaudited)

Net Income (GAAP)

$

12,966

$

2,672

$

2,757

$

4,156

$

4,152

$

22,550

$

11,247

Amortization of Intangible Assets, Net

430

445

446

445

446

1,766

1,782

Adjusted Net Income (Non-GAAP) (Numerator)

$

13,396

$

3,117

$

3,203

$

4,601

$

4,598

$

24,316

$

13,029

Annualization Factor

3.97

3.97

4.01

4.06

3.97

1.00

1.00

Average Stockholders' Equity (GAAP)

$

114,327

$

117,435

$

117,949

$

114,752

$

107,965

$

116,118

$

117,610

Average Goodwill and Intangible Assets, Net

(11,829

)

(12,185

)

(12,626

)

(13,080

)

(13,534

)

(12,426

)

(14,193

)

Average Tangible Common Equity (Non-GAAP) (Denominator)

$

102,498

$

105,250

$

105,323

$

101,672

$

94,431

$

103,692

$

103,417

Return on Average Equity (GAAP)

44.99

%

9.03

%

9.38

%

14.69

%

15.26

%

19.42

%

9.56

%

Return on Average Tangible Common Equity (Non-GAAP)

51.85

%

11.75

%

12.20

%

18.35

%

19.32

%

23.45

%

12.60

%

Three Months Ended

Year Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

(Dollars in thousands) (Unaudited)

Interest Income (GAAP)

$

16,905

$

15,874

$

15,203

$

14,244

$

13,855

$

62,225

$

47,716

Adjustment to FTE Basis

45

43

35

31

29

155

134

Interest Income (FTE) (Non-GAAP)

16,950

15,917

15,238

14,275

13,884

62,380

47,850

Interest Expense (GAAP)

5,769

5,157

4,083

2,661

1,989

17,672

4,781

Net Interest Income (FTE) (Non-GAAP)

$

11,181

$

10,760

$

11,155

$

11,614

$

11,895

$

44,708

$

43,069

Net Interest Rate Spread (GAAP)

2.56

%

2.54

%

2.78

%

3.13

%

3.18

%

2.73

%

3.07

%

Adjustment to FTE Basis

0.01

0.01

0.01

0.01

0.01

0.01

0.01

Net Interest Rate Spread (FTE) (Non-GAAP)

2.57

%

2.55

%

2.79

%

3.14

%

3.19

%

2.74

%

3.08

%

Net Interest Margin (GAAP)

3.19

%

3.13

%

3.29

%

3.51

%

3.46

%

3.28

%

3.24

%

Adjustment to FTE Basis

0.02

0.01

0.01

0.01

0.01

0.01

0.01

Net Interest Margin (FTE) (Non-GAAP)

3.21

%

3.14

%

3.30

%

3.52

%

3.47

%

3.29

%

3.25

%

Three Months Ended

Year Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

(Dollars in thousands) (Unaudited)

Net Income Before Income Tax Expense (GAAP)

$

18,309

$

3,236

$

3,456

$

5,285

$

5,228

$

30,285

$

14,080

(Recovery) Provision for Credit Losses

(1,420

)

406

432

80

—

(502

)

3,784

Adjustments

Loss (Gain) on Securities

9,830

37

100

232

(83

)

10,199

168

Gain on Sale of Subsidiary

(24,578

)

—

—

—

—

(24,578

)

—

Adjusted PPNR (Non-GAAP) (Numerator)

$

2,141

$

3,679

$

3,988

$

5,597

$

5,145

$

15,404

$

18,032

Annualization Factor

3.97

3.97

4.01

4.06

3.97

1.00

1.00

Average Assets (Denominator)

$

1,421,813

$

1,410,888

$

1,406,741

$

1,388,248

$

1,414,300

$

1,407,027

$

1,406,428

Adjusted PPNR Return on Average Assets (Non-GAAP)

0.60

%

1.04

%

1.14

%

1.64

%

1.44

%

1.09

%

1.28

%

Three Months Ended

Year Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

(Dollars in thousands, except share and per share data) (Unaudited)

Net Income (GAAP)

$

12,966

$

2,672

$

2,757

$

4,156

$

4,152

$

22,550

$

11,247

Adjustments

Loss (Gain) on Securities

9,830

37

100

232

(83

)

10,199

168

Gain on Sale of Subsidiary

(24,578

)

—

—

—

—

(24,578

)

—

Gain on Disposal of Fixed Assets

—

—

—

(11

)

—

(11

)

(431

)

Gain on Bank-Owned Life Insurance Claims

—

—

(1

)

(302

)

—

(303

)

—

Tax effect

4,843

(8

)

(21

)

(46

)

17

4,767

55

Adjusted Net Income (Non-GAAP)

$

3,061

$

2,701

$

2,835

$

4,029

$

4,086

$

12,624

$

11,039

Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding

5,135,997

5,126,546

5,116,134

5,115,705

5,104,254

5,122,916

5,149,312

Earnings per Common Share - Diluted (GAAP)

$

2.52

$

0.52

$

0.54

$

0.81

$

0.81

$

4.40

$

2.18

Adjusted Earnings per Common Share - Diluted (Non-GAAP)

$

0.60

$

0.53

$

0.55

$

0.79

$

0.80

$

2.47

$

2.15

Net Income (GAAP) (Numerator)

$

12,966

$

2,672

$

2,757

$

4,156

$

4,152

$

22,550

$

11,247

Annualization Factor

3.97

3.97

4.01

4.06

3.97

1.00

1.00

Average Assets (Denominator)

1,421,813

1,410,888

1,406,741

1,388,248

1,414,300

1,407,027

1,406,428

Return on Average Assets (GAAP)

3.62

%

0.75

%

0.79

%

1.21

%

1.16

%

1.60

%

0.80

%

Adjusted Net Income (Non-GAAP) (Numerator)

$

3,061

$

2,701

$

2,835

$

4,029

$

4,086

$

12,624

$

11,039

Annualization Factor

3.97

3.97

4.01

4.06

3.97

1.00

1.00

Average Assets (Denominator)

1,421,813

1,410,888

1,406,741

1,388,248

1,414,300

1,407,027

1,406,428

Adjusted Return on Average Assets (Non-GAAP)

0.85

%

0.76

%

0.81

%

1.18

%

1.15

%

0.90

%

0.78

%

Three Months Ended

Year Ended

12/31/23

9/30/23

6/30/23

3/31/23

12/31/22

12/31/23

12/31/22

(Dollars in thousands) (Unaudited)

Net Income (GAAP) (Numerator)

$

12,966

$

2,672

$

2,757

$

4,156

$

4,152

$

22,550

$

11,247

Annualization Factor

3.97

3.97

4.01

4.06

3.97

1.00

1.00

Average Equity (GAAP) (Denominator)

114,327

117,435

117,949

114,752

107,965

116,118

117,610

Return on Average Equity (GAAP)

44.99

%

9.03

%

9.38

%

14.69

%

15.26

%

19.42

%

9.56

%

Adjusted Net Income (Non-GAAP) (Numerator)

$

3,061

$

2,701

$

2,835

$

4,029

$

4,086

$

12,624

$

11,039

Annualization Factor

3.97

3.97

4.01

4.06

3.97

1.00

1.00

Average Equity (GAAP) (Denominator)

114,327

117,435

117,949

114,752

107,965

116,118

117,610

Adjusted Return on Average Equity (Non-GAAP)

10.62

%

9.12

%

9.64

%

14.24

%

15.01

%

10.87

%

9.39

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20240131506554/en/

Contacts

John H. Montgomery
President and Chief Executive Officer
Phone: (724) 225-2400

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